https://www.taxtmi.com/caselaws?id=114817 Modvat credit was treated as inadmissible on broken shells because the inputs had not been used in or in relation to manufacture and were damaged before use through mishandling. Rule 196 of the Central Excise Rules, 1944 was held inapplicable since it concerns inputs damaged after removal under Chapter X procedure, not goods received and broken before use. Penalty was also held supportable where credit had been taken suo motu on damaged inputs without departmental clarification or bona fide basis, and the relief granted in appeal was interfered with to the extent permitted under Section 11AC and Rule 57-I(4). en-us Wed, 01 Dec 2004 00:00:00 +0530 Mon, 21 May 2012 13:37:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=114817 Modvat credit was treated as inadmissible on broken shells because the inputs had not been used in or in relation to manufacture and were damaged before use through mishandling. Rule 196 of the Central Excise Rules, 1944 was held inapplicable since it concerns inputs damaged after removal under Chapter X procedure, not goods received and broken before use. Penalty was also held supportable where credit had been taken suo motu on damaged inputs without departmental clarification or bona fide basis, and the relief granted in appeal was interfered with to the extent permitted under Section 11AC and Rule 57-I(4). Case-Laws Central Excise Wed, 01 Dec 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=114817